Another day, another Android licensing deal for Microsoft

Microsoft today announced its 10th Android patent licensing agreement in the past 18 months, sealing a deal with Taiwan-based electronics maker Compal. As part of the agreement, Microsoft will earn royalties on tablets, mobile phones, e-readers and other Compal devices which use Android or Chrome.

Terms were not disclosed.

Now, along with recent agreements with Wistron and Quanta Computer, Microsoft said that it has entered into deals that represent more than half of the original design manufacturing industry for Android and Chrome devices.

“Amidst continuing clamor about uncertainty and litigation relating to smartphone patents, we’re putting in place a series of agreements that are reasonable and fair to both sides. Our agreements ensure respect and reasonable compensation for Microsoft’s inventions and patent portfolio. Equally important, they enable licensees to make use of our patented innovations on a long-term and stable basis.”

Here’s a look at the Android licensing and litigation landscape, as diagrammed by Microsoft:

Comments

Guest

Congratulations to Microsoft on continuing to make major money from Android! This is great news for consumers and shareholders alike.

Guest

Congratulations to Microsoft for losing a market you had a ten year head start in. Your initial arrogance and then ridiculously slow response has been breathtaking to behold. And of course now you’re in trouble in tablets too as the same dynamics play out. But please accept your consolation prize: royalties. It’ll make Android phones a couple of bucks more expensive, and your shareholders will at least get back a few hundred million of the billions you’ve lost in mobile and are about to lose everywhere else as mobile and tablets eat into PCs.

Guest

Losing? Android has a 90% market share among new customers, and Microsoft gets a piece of every single one. Android tablets, too. No, I think Steve Ballmer is “losing like a fox.”

Guest

Yes. losing.

“Android has a 90% market share”.

Exactly.

“No, I think Steve Ballmer is “losing like a fox.””

Yeah, those Android royalties are going to make up for all the WP7 licenses forgone, not to mention the Windows and Office licenses being cannibalized as smart phones and tablets continue displacing PCs.

Anonymous

I’m not sure you understand how this works. Microsoft is being paid
because other companies find their inventions to be quite valuable.

Guest

No. MS is being paid because those companies think they would lose a patent battle or that it would be too expensive to contest. The invention they apparently find valuable is Google’s Android over MS’s WP7. So much so that they’re even pay MS to keep using it.

Anonymous

Why would they lose patent litigation?

Of course, you’re right. They would lose, but I’m surprised you’d make that point.

Google is not contesting it because they agree with MS. MS does in fact have a rightful claim. Oracle and Apple also have a rightful claim. But instead of letting competitors use their technology in return for fair compensation, they’ve chosen to sue the infringing companies.

I like that MS is willing to let other companies exchange ideas, rather than try to meticulously track down every thread of what they own and hoard it.

Guest

Why wouldn’t I make the point? Android is a patent minefield. But so far its one that OEMs are prepared to keep dealing with vs more seriously embracing alternatives like WP7.

Windows has been the target of hundreds of IP lawsuits, many of which MS has lost. It’s still the dominant OS.

Anonymous

“So much so that they’re even pay MS to keep using it.”
Nearly, maybe all, of the companies involved make both Android and WP7 devices. Apparently, they find both platforms to be quite valuable.

Guest

Which platform are they focused on? Which one gets their most innovative phones and which the hand-me-downs? Which one is providing most of their volume and growth?

Congratulations to Microsoft on continuing making money on other people’s work
while your own isn’t any relevant to today technology

Anonymous

Actually Royalties are paid by parties that are using other peoples work. I guess you got that backwards. Just because someone deliberately took or inadvertantly used someone elses IP, doesn’t mean they shouldn’t pay royalties to those who own the IP.

Anonymous

I’m not sure you understand how this works. Microsoft is being paid because other companies find their inventions to be quite valuable.